Sept. 24 (Bloomberg) -- Teijin Ltd, a carbon-fiber maker
whose clients include General Motors Co., plans to boost
capacity for its aramid fiber to meet demand for the heat-resistant material used in tires and bullet-proof vests.

“Market expectations are quite high, and as it is a
difficult technology, profits are expected to be very high as
well,” Shigeo Ohyagi, president and chief executive officer of
Teijin, said in an interview in Amsterdam. “Aramid fiber is an
important strategic field for Teijin.”

Demand for the material will rise 7 percent to 9 percent
annually, and the industry now produces about 50,000 tons of the
material a year, Ohyagi said. Osaka, Japan-based Teijin produces
25,000 tons of the heatproof product at its Netherlands-based
Teijin Aramid site. It competes with DuPont Co., which produces
a similar substance called Kevlar, Ohyagi said.

Growth will be driven by developments such as increasing
demand for fiber-optic cables and protective clothing and
materials, Ohyagi said. Aramid fiber was also used in
combination with Teijin’s carbon fiber in the facade of the
newly renovated Stedelijk Museum in Amsterdam.

Teijin, whose clients include European Aeronautic Defence &
Space Co., has invested 1 billion euros ($1.29 billion) in its
Dutch unit since buying it from Akzo Nobel NV in 2000, according
to the company. Teijin will mainly expand production in places
where costs are lower, such as Asia, Ohyagi said.